If you are looking to start a new business or expand an existing enterprise, you might also be considering how to obtain funding. A credit union is an excellent option for getting a business loan, as they offer flexible terms and competitive rates—perfect for business owners. Here are the steps for exploring and choosing credit union business lending:
Identify Your Financing Needs
Clearly define the purpose of your loan before you even apply. By doing so, you can identify how much you need to borrow.
For new ventures, you can start by creating a business plan detailing your projected expenses and income. For existing ones, reviewing your financial records and cash flow situation is important to help you identify your repayment capabilities and the loan’s impact on your business.
Check Your Loan Eligibility
You can do this to determine the likelihood of your business loan getting approved. Your credit score is an important consideration, but credit union business lending approvals also look at other factors, such as business history, annual revenue, and collateral options, among other things.
For an accurate assessment of your approval odds, it is best to discuss the specific lending requirements with a credit union business lending representative.
Research Available Credit Unions
The next step is to find the right credit union to suit your financing needs. Before choosing one, consider the following carefully: business lending experience, loan approval requirements, repayment terms, interest rates, and additional fees. It is also vital to research a credit union’s customer service and the reviews from other business owners to help you decide.
Prepare the Requirements
Organize the required documents for a faster and smoother application process. Although the requirements might differ per credit union, there are several documents that most lenders require, such as a business plan, financial statements, and tax returns.
Become a Credit Union Member
Join your chosen credit union, provided you meet certain eligibility requirements and can present the documents needed. With Heartland Credit Union, the membership application process and account opening can take place online, over video, in person, or in the app. Once you become a member, you can start taking advantage of the available financial products and services.
Get the Loan Application Process Started
Fill out the contact form online and a member of the business lending team will reach out to you in 1-2 business days. Be ready to submit all the required documents. After you have all your info in, the application will be reviewed to determine whether you qualify for financing.
Wait for the Approval and Closing Process
As you await the result of your application, be prepared to provide additional documentation as discussed in your phone call with the lender. Respond to any queries or requests from your loan officer as soon as possible to ensure the underwriting process stays on schedule. You will then be notified of the availability of the funds once the entire process is completed and finalized.
Consult With a Heartland Credit Union Lending Expert
Request an appointment today to discuss available loan options and determine which one works best for your business. We look forward to helping your business get off the ground or grow to the next level.
